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Technical progress and the pattern of specialization in world trade in manufactures, 1965 to 1987

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  • Lücke, Matthias

Abstract

It has been hypothesized that technical progress will erode the competitiveness of the manufactured exports of developing countries. The paper tests two assumptions underlying this hypothesis. First, limited technological competence might prevent developing countries from competing effectively in industries with rapid technological change. Secondly, increases in labour productivity might reduce the importance of low labour costs as a determinant of competitiveness. This paper presents a crosscountry, cross-industry econometric analysis of the determinants of specialization in trade in manufactures, covering 3 7 industrialized and developing countries. Neither hypothesized relationship is supported by the data.

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 534.

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Date of creation: 1992
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Handle: RePEc:kie:kieliw:534

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  1. Nelson, Richard R., 1989. "Industry growth accounts and production functions when techniques are idiosyncratic," Journal of Economic Behavior & Organization, Elsevier, vol. 11(3), pages 323-341, May.
  2. Harry P. Bowen & Edward E. Leamer & Leo Sveikauskas, 1986. "Multicountry, Multifactor Tests of the Factor Abundance Theory," NBER Working Papers 1918, National Bureau of Economic Research, Inc.
  3. Fischer, Bernhard & Herken-Krauer, Juan-Carlos & Lücke, Matthias & Nunnenkamp, Peter, 1988. "Capital-intensive industries in newly industrializing countries : the case of the Brazilian automobile and steel industries," Open Access Publications from Kiel Institute for the World Economy 411, Kiel Institute for the World Economy (IfW).
  4. Clague, Christopher K., 1991. "Factor proportions, relative efficiency and developing countries' trade," Journal of Development Economics, Elsevier, vol. 35(2), pages 357-380, April.
  5. Lücke, Matthias, 1990. "Traditional labour-intensive industries in newly industrializing countries : the case of Brazil," Open Access Publications from Kiel Institute for the World Economy 415, Kiel Institute for the World Economy (IfW).
  6. Summers, Robert & Heston, Alan, 1988. "A New Set of International Comparisons of Real Product and Price Levels Estimates for 130 Countries, 1950-1985," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(1), pages 1-25, March.
  7. Ballance, Robert H & Forstner, Helmut & Murray, Tracy, 1987. "Consistency Tests of Alternative Measures of Comparative Advantage," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 157-61, February.
  8. Amemiya, Takeshi, 1978. "A Note on a Random Coefficients Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 793-96, October.
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